Owens Corning Inc (OC) vs Advanced Drainage Systems, Inc. (WMS)

Owens Corning Inc and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Owens Corning Inc and Advanced Drainage Systems, Inc. are of similar size ($9.7B and $9.0B). Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Advanced Drainage Systems, Inc. trades at 21.9×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against −7.23%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs −6.81%) and the higher return on invested capital (12.3% vs 0.36%). Both pay a dividend; Owens Corning Inc yields more (3.41% vs 0.59%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 15 and Owens Corning Inc on 7.

Valuation

Metric OC WMS Building Products & Equipment median
P/E n/m 21.93 23.15
P/S 0.92 3.04 2.02
P/B 2.38 5.38 2.81
Price to free cash flow 9.32 17.76 16.84
EV/EBITDA 7.19 12.63 12.85
EV/Sales 1.41 3.52 2.04
Earnings yield (7.15%) 4.56% 2.76%
Free cash flow yield 10.73% 5.63% 4.23%

Profitability

Metric OC WMS Building Products & Equipment median
Gross margin 25.98% 38.65% 29.19%
Operating margin 0.51% 20.74% 6.99%
Net margin (6.81%) 14.00% 4.05%
Free cash flow margin 9.87% 17.10% 7.60%
Return on equity (14.89%) 25.71% 9.28%
Return on assets (4.93%) 10.71% 2.88%
Return on invested capital 0.36% 12.34% 5.16%

Growth

Metric OC WMS Building Products & Equipment median
Revenue growth (TTM) (7.23%) 10.37% 3.11%
EPS growth (last fiscal year) (184.40%) (5.56%) (34.13%)
Revenue growth, 5-year CAGR 7.45% 9.00% 5.37%
Net income growth, 5-year CAGR 0.00% 18.13% 0.00%

Health

Metric OC WMS Building Products & Equipment median
Debt to equity 1.34 0.95 0.43
Current ratio 1.16 2.12 1.82
Net debt to EBITDA 2.14 1.80 0.98

Dividend

Metric OC WMS Building Products & Equipment median
Dividend yield 3.41% 0.59% 1.43%
Payout ratio — 0.13 0.29

Size

Metric OC WMS Building Products & Equipment median
Market cap 8.99b 9.69b 1.17b

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